(KLZA)-- While the U.S. economy will experience a strong holiday buying season, Creighton University economics professor Ernie Goss, expects that consumers will see higher prices, fewer bargains and a lack of in-demand products due to supply chain disruptions, worker shortages and soaring inflationary pressures.

He recommends holiday consumers shop early and in-store as shortages and higher prices continue.

Stores within the Mid-America and Rural Mainstreet regions are expected to see strong sales this season, with growth rising up to 10% from last year. Unfortunately for retailers, approximately 5% of the increase in net sales is due to inflation caused by supply chain bottlenecks and labor shortages. These supply chain bottleneck disruptions are related to transportation delays and truck driver shortages. In response, 30% of supply managers reported intentional hoarding or stockpiling of inventories to reduce the risks of the supply chain disruptions. 

The second most important factor restraining the U.S. economy is a hiring shortage. As a result, shoppers can expect to encounter longer checkout lines and less customer service assistance – something that hasn’t been seen in decades. 

While online shopping increased last year due to the COVID-19 pandemic, many consumers will shop in-store to avoid transportation delays that could cause their holiday gifts to arrive late. Consumers also are more likely to shop local than previous seasons because of rising fuel prices. However, with many business closures, shoppers will have fewer retail options, particularly outside of metropolitan areas.
 
Consumers will see fewer deals this holiday shopping season due to hiring shortages, supply chain disruptions and surging inflation rates. Consumers who shop earlier will be more likely to encounter deals than last-minute shoppers. 

 With two federal stimulus programs and an unprecedented Federal Reserve expansion, consumers will likely increase their cash-to-credit ratio this holiday shopping season, resulting from shoppers having a significantly larger cash cushion than in 2020.